Essay on Case Study – Activity – Based Management in Shell Gabon

The primary users will be the Japanese lumber company who is interested in purchasing CFCL, and the owner, Don Strom. The purchaser will depend on the financial statements to assess performance of the company. However, they will most likely focus on inspection of CFCL’s timber assets to value the company and the purchase price. Strom will be looking at the statements to ensure proper management performance, and that net income is not overstated, to reduce bonus and tax payouts. The Controller will also hold a bias to inflate net income to increase his bonus. Attention should be given to ensure his new policy suggestions are not for his own benefit, but the benefit of CFCL and Strom. Accounting alternatives and recommendations in relation to the issues and new policies will be discussed.

For NASA division, whether or not actual transferring to/from EROW will have no direct effect on its financial results, but the planned amount will do. Volume variance in NASA is computed as taking the difference between capacity 63,750 (annual capacity of 85,000 adjusted to 9 month) and actual production 47,500, and times standard fixed cost per unit $700 per tonne. Actual production is based on budget generated by EROW in previous year. The more EROW budgeted transferring from NASA, the less volume variance for NASA, thus the more favorable of the result.

As the financial consultants of Catawba Industrial Company our aim is to determine the best course of action to pursue with respect to the introduction of the new proposed light weight compressor. This course of action must remain within the production capacity restrictions the company faces.

An organization costing system is a system that helps the management with the strategy planning while the system plays an important role in providing accurate cost information about the products and customers (Curtin, 2006). UPS utilizes the Activity-Based Costing (ABC) system. ABC assumes that activities cause costs and that cost objects create the demand for activities (Marx,

Overhead costs are not in proportion to the production output because of the method they are using. This leads to inaccurate pricing and costing decisions. An Activity Based Costing System would help find the real relationship between the products produced and overhead.

By 2001, almost 50 years after its inception, Petrobras had become a fully integrated oil and gas company. Petrobras was the seventh largest publicly traded oil and gas company in the world based upon proven reserves, the largest Brazilian corporation, the third largest Latin American corporation, and the 185th largest global company, by 2001 consolidated revenues. In Brazil, Petrobras had a dominant position in both upstream and downstream activities. The company’s combined oil and gas production was 1,621 tbpd and it had proven reserves estimated at around 9.3 billion boe.5 (Exhibit 1 provides selected oil and gas data for Petrobras and other oil companies.) Most of the firm’s proven reserves were located in very deep waters (more than 400 meters) and Petrobras was the world’s pioneer in deep water oil exploration and production. Furthermore, with approximately

A wealthy British gentleman by the name of William D’Arcy is the founder of the world famous gas station BP. D’Arcy had a thrill over oil and decided to invest all of his savings in the quest for oil in the Middle East. Experts and scientists helped encourage D’Arcy to pursue the venture. But years started to pass and funds starting to run low, William was starting to feel as if this was the wrong investment. Throughout the years BP has gone through a plethora of ups and downs. From bankruptcy, to not being able to transport oil to desired location, and also having more oil than they could sell and not having a demand for it. Also BP has had disasters related to social responsibility, and before the major oil spill in 2010,

Barrels of oils produced may be a cost driver for some activities in RDS, but not all activities are driven by the production of oil. RDS has other activities that requires significant expenditures as the headquarter. The capital investment on exploration for various

1. Evaluate the economics of Gulf's exploration and development program in net present value terms. How do Gulf's outlay for exploration and development compare to cash returns Gulf generates from these activities.

British Petroleum (BP) is the world largest retailer of gasoline in the United States. It ranks at the top of three global oil and gas industry. From the corporate watch website (2009), it pointed out that almost 70% of the profits are gained from the US and Europe. In addition, BP is also devoted for aviation fuels and shipping aspects. It is reported that about 900 ports and more than 1400 airports have been supplied by the BP’s lubricants and fuels. Meanwhile, BP has operated on other countries such as Asia and South America in order to expand its market and explorations.

Operating expenses includes production costs, such as direct labor, indirect labor, inventory carrying costs, equipment depreciation, materials and supplies used in production, and administrative cost. This was not happening at Alex’s plant. His inventories had increased over the past six or seven months and operational expense also increased. This meant he had a lot of work to do to keep his plant open and he was now aware of it.

of the spills reported that the company spilled 7.4 million liters of oil in 27 separate

The Pacific Oil Company a well-established oil company with an assorted diversified product line including “Vinyl Chloride Monomer (VCM)”. (Lewicki, 2010, p. 583) As one of the pioneer producers of VCM, Pacific Oil cornered the market share for contracting, distributing and selling their niche product, VCM worldwide. One of Pacific’s longtime customers was Reliant Corporation. This partnership was more than a decade old and was strong. However, if Pacific Oil decided to further diversify its product line to include Polyvinyl Chloride (PVC) a VCM derivative, “it would not want to be in the position of supplying a product competitor with the raw materials to manufacture the product line, unless the formula price was extremely

We used two analyses methods to identify background and to evaluate information that we have.

The objective of this report was to analyze Vivint-Smart Home Solutions’ performance in terms of organisational culture, management and leadership styles and motivation and how organizations have been affected by them. In this report, we identified that Vivint has an association of Hierarchy and Market organisational culture, relationship-oriented and task-oriented leadership styles and servant leadership style. Moreover, it demonstrated that Vivint has intrinsic and extrinsic rewards. These resulted in successful and unsuccessful practices of Vivint based on the Undercover Boss TV series based on three aspects which have been mentioned above. In addition, this report critiqued the Undercover Boss method for discovering the problems within an organisation and recommended other processes for uncovering issues. The results showed that organisational culture, management and leadership styles as well as motivation played significant roles in Vivint’s performance. Recommendations have been made to improve the unsuccessful practices of Vivint such as training managers to be empathic problem solver, examining and updating the working condition regularly, bonus for employees who give feedback voluntarily on management processes and offering fund to employees who are in need of support.